2010-01-19                     House Journal                      Page 1293
HB 296                                                                                                                        
HOUSE BILL NO. 296 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act authorizing and relating to the issuance of bonds by the                                                           
     Alaska Housing Finance Corporation; establishing the Alaska                                                                
     energy efficiency revolving loan fund and relating to the fund;                                                            
     authorizing municipalities and the State of Alaska to borrow                                                               
     money from the Alaska Housing Finance Corporation for the                                                                  
     purposes of the Alaska energy efficiency revolving loan fund; and                                                          
     providing for an effective date."                                                                                          
                                                                                                                                
was read the first time and referred to the House Special Committee on                                                          
Energy and the Finance Committee.                                                                                               
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Revenue                                                                                                      
2.  Zero, Dept. of Transportation & Public Facilities                                                                           
                                                                                                                                
The Governor's transmittal letter dated January 15, 2010, follows:                                                              
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Art. III, Sec. 18, of the Alaska Constitution, I                                                         
am transmitting a bill authorizing and relating to the issuance of bonds                                                        
by the Alaska Housing Finance Corporation (AHFC); establishing the                                                              
Alaska Energy Efficiency Revolving Loan Fund and relating to the                                                                
fund; and authorizing municipalities and the State of Alaska to borrow                                                          

2010-01-19                     House Journal                      Page 1294
money from the Alaska Housing Finance Corporation for the purposes                                                              
of the Alaska Energy Efficiency Revolving Loan Fund.                                                                            
                                                                                                                                
The Federal American Recovery and Reinvestment Act of 2009                                                                      
appropriated $28.3 million to Alaska for the State Energy Program. Of                                                           
that, I recommended spending $18 million to make energy efficiency                                                              
improvements to public buildings. The bill leverages that $18 million                                                           
by allowing AHFC to issue up to $250 million in bonds for the                                                                   
purpose of financing energy efficiency improvements to State and                                                                
municipal buildings in the state.                                                                                               
                                                                                                                                
The bill creates the Alaska energy efficiency revolving loan fund                                                               
within AHFC. All earnings and loan payments will be retained by the                                                             
fund for future loans. Money and other assets of the Alaska energy                                                              
efficiency revolving loan fund may be used to make loans to                                                                     
municipal governments or to State agencies for the purpose of                                                                   
financing energy efficiency improvements to buildings owned by                                                                  
municipalities in the state or by the State of Alaska.                                                                          
                                                                                                                                
As an example, a municipal government or school district will have an                                                           
energy audit performed on its building. That audit might determine                                                              
that $120,000 in work will make the building more energy efficient                                                              
and that those improvements will reduce energy costs by $20,000 a                                                               
year. The local government can take out a loan with the AHFC to do                                                              
the work and then repay the loan with the funds made available due to                                                           
the savings achieved through the energy efficiency improvements.                                                                
After the debt is settled, those funds will be available to that                                                                
government for other purposes or to reduce the size of the budget.                                                              
                                                                                                                                
This program will result in less energy used by public buildings as                                                             
well as ultimately saving public money. Alaska's economy will also                                                              
benefit from contracted projects, and will put Alaskans to work.                                                                
                                                                                                                                
I urge your prompt and favorable consideration of this bill.                                                                    
                                                                                                                                
                                Sincerely,                                                                                     
                                /s/                                                                                             
                               Sean Parnell                                                                                    
                                 Governor"